Belgian employers see economic glimmers but urge swift reforms

Belgium’s employers’ federation, VBO/FEB, sees cautious signs of economic improvement but insists that rapid reforms and a solid EU-US trade deal are essential for sustained recovery.

In its biannual economic survey conducted in May, the VBO reports “a few glimmers of light” amid ongoing global uncertainty. For the first time in over a year, optimism slightly outweighs pessimism among industry sectors, thanks in part to easing inflation.

However, the organisation warns that the recovery remains fragile. “In 70 per cent of sectors, economic activity is still below long-term averages, particularly in manufacturing”, said CEO Pieter Timmermans. Since early 2023, over 15,000 industrial jobs have been lost.

“In 70 per cent of sectors, economic activity is still below long-term averages, particularly in manufacturing”

Timmermans stressed the need for timely implementation of government reforms, including stricter limits on unemployment benefits and pension changes. “These reforms are difficult, but necessary. Other countries introduced them long ago. We always wait until the last minute”, he said.

The VBO also renewed its call to revise Belgium’s automatic wage indexation system, which it argues undermines competitiveness. Timmermans linked this to broader wage norm discussions and warned that delays will only heighten social unrest.

^{Illustration shows the Volvo Cars plant in Gent © BELGA PHOTO NICOLAS MAETERLINCK}